COCO Should I Buy
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Vita Coco (COCO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial growth, positive analyst sentiment, and favorable long-term catalysts outweigh the short-term technical weakness and insider selling. The stock's growth potential in international markets and recent tariff exemptions further support the buy decision.
The MACD is negatively expanding (-0.656), indicating bearish momentum. RSI is neutral at 34.342, and moving averages are converging, showing no clear trend. Key support is at 50.163, with resistance at 54.697. Overall, the technical indicators suggest a neutral to slightly bearish short-term trend.
Analysts have raised price targets significantly, with a consensus overweight/buy rating.
Strong international sales growth (42% YoY in Q4 2025).
Tariff exemptions on coconut water imports, reducing costs and improving margins.
FY2025 revenue grew 18% YoY, with strong projections for FY2026 ($680M-$700M).
Insider selling has increased significantly (1247.06% over the last month).
Short-term technical indicators show bearish momentum.
Q4 EPS missed estimates by $0.04, which could weigh on sentiment in the near term.
In Q4 2025, Vita Coco reported revenue of $127.8M, up 0.39% YoY, and net income of $5.53M, up 64.01% YoY. EPS increased by 50% YoY to $0.09, and gross margin improved to 34.88%, up 7.49%. FY2025 revenue grew 18% YoY to $610M, with strong international market performance.
Analysts are bullish on COCO, with multiple price target upgrades in recent months. Wells Fargo raised the target to $63, BofA to $60, and Piper Sandler to $59, all maintaining buy or overweight ratings. Analysts cite tariff exemptions, lower freight costs, and increasing household penetration as key drivers for growth.
